Fairtrade Standard for Cane Sugar

Transcription

1 Didier Gentilhomme Fairtrade Standard for Cane Sugar Applies to: Small producer organizations and traders Current version: _v1.0 Expected date of next review: 2020 Contact for comments: For further information and standards downloads:

2 Content Introduction 3 How to use this Standard 3 Product description 3 Price and Fairtrade Premium 3 Chapters 3 Structure 4 Requirements 4 Scope 4 Application 4 Definitions 4 Monitoring of changes 5 Change history 5 1. General Requirements 6 2. Trade Traceability 6 3. Production Production indicators Occupational health and safety 7 4. Business and Development Contracts Price and Fairtrade Premium Timely payment Premium payment in case of multiple producers supplying the same mill Premium use Access to finance Sourcing and market information for planning Retro-certification 11 Annex 1: Reporting template for production indicators 12 2

3 Introduction How to use this Standard The covers the requirements which are specific to sugar cane producers and traders. Fairtrade cane sugar producers must comply with both the Fairtrade Standard for Small Producer Organizations and the. For producers this standard complements, and should be read together with, the Fairtrade Standard for Small Producer Organizations. Fairtrade cane sugar traders must comply with both the Fairtrade Trader Standard and Fairtrade Standard for Cane Sugar. For traders this standard complements, and should be read together with, the Fairtrade Trader Standard. In cases where this standard differs from the Fairtrade Standard for Small Producer Organizations Standard or the Fairtrade Trader Standard on the same topic, the requirements presented in this standard apply. Product description This standard covers the purchase and sale of cane sugar. Cane sugar is produced from the juice of the sugar cane plant (Saccharum spp.). This standard also covers secondary products and their derivatives. A secondary product can be a by-product, a co-product or a residue produced in the country of origin. By-products of cane sugar production are for example molasses, bagasse, bagasse ash, and filter cake. A derivative of a secondary product is a secondary product processed in the country of origin. Derivatives of a secondary product are for example rum produced with molasses and bio-plastics made from bagasse. The definition of secondary products is included in the Fairtrade Trader Standard. An explanatory note for secondary products and a non-exhaustive list of products fitting in the secondary products definition is available on the Fairtrade International website. Price and Fairtrade Premium There is no Fairtrade Minimum Price for Fairtrade cane sugar. Fairtrade Premium levels for Fairtrade products are published separately to the product Standards. There are no Fairtrade Minimum Prices defined for secondary products and their derivatives. The prices (at CIF or FOB level) of these products, from any origin, are negotiated between the importer and the exporter. A default Fairtrade Premium of 15% of the negotiated price must be paid in addition. Chapters The has four chapters: General Requirements, Trade, Production and Business and Development. 3

4 Structure In each chapter and section of the standard you will find: The intent which introduces and describes the objective and defines the scope of application of that chapter; The requirements which specify the rules that you must adhere to. You will be audited according to these requirements; and The guidance provided to help you to interpret the requirements. The guidance offers best practices, suggestions and examples of how to comply with the requirement. It also gives you further explanation on the requirement with the rationale and / or intention behind the requirement. You will not be audited against guidance. Requirements In this standard you will find two different types of requirements: requirements which reflect Fairtrade principles and all of which must be complied with. These are indicated with the term found in the column on the left throughout the Standard. Voluntary Best Practices (VBP) which refer to the additional steps that all supply chain actors can take to foster even fairer trading conditions. They serve as your reference point for achieving best practice and contribute to greater sustainability in the entire supply chain. These practices are voluntary and not required in order for you to be in compliance. They will be however monitored on a regular basis in order to identify those actors that go beyond minimum compliance. These practices are indicated with the term VBP found in the column on the left throughout the standard. Scope This standard applies to all Fairtrade cane sugar producers and all companies that buy and sell Fairtrade cane sugar. All operators taking ownership of Fairtrade certified products and / or handling the Price and Fairtrade Premium are audited and certified. Different requirements apply to different companies depending on their role in the supply chain. You can find if a requirement is applicable to you in the column applies to. Application This version of the was published on 1 October 2015 and is applicable from 1 April This version supersedes all previous versions and includes new and changed requirements. New requirements are identified in this standard by the word NEW. Definitions Fairtrade eligible is the volume of all cane produce by certified producers that can be sold under Fairtrade conditions. Producer means any entity that has been certified under the Fairtrade Standard for Small Producer Organizations. Individual producers are the members of those organizations. Retro-certification occurs when a Fairtrade payer buys cane sugar from a Fairtrade producer or exporter under ordinary conditions (non-fairtrade) and at a later stage converts it into a Fairtrade product. For a comprehensive list of definitions see the Fairtrade Trader Standard. 4

5 Monitoring of changes Fairtrade International may change Fairtrade standards as explained in Fairtrade International s Standard Operating Procedures, see Fairtrade Standard requirements can be added, deleted, or changed. If you are Fairtrade-certified, you are required to check the Fairtrade International website regularly for changes to the standards. Fairtrade certification ensures that you comply with Fairtrade standards. Changes to Fairtrade Standards may change the requirements of Fairtrade certification. If you wish to be or are already Fairtrade certified, you are required to check the compliance criteria and certification policies on the certification body s website regularly at Change history Version number Date of publication Changes _v New Standards Framework (NSF) changes: (1) reorganization of the standard into 4 chapters _v Full review of the standard, alignment with the Trader Standard. New requirements on like for like rule, GMO contamination, reporting on indicators on sustainable production, drinking water for workers, additional reporting by conveyors, premium payment in case of multiple producers supplying the same mill, premium planning and regular meetings with producers. Addition of definition section, simplification of wording, reorganization of requirements, deletion of redundancies, added or improved guidance, new standard design. 5

6 1. General Requirements There are no additional requirements. 2. Trade Intent: To provide maximum benefits to producers, while remaining credible to consumers. 2.1 Traceability NEW Mass balance: like for like rule in sugar Applies to: All traders that apply mass balance You ensure that Fairtrade inputs are of the same kind and quality as the inputs used to process the Fairtrade output (like for like). Guidance: The requirement in the Trader Standard should be applied considering that for sugar the same kind and quality includes, but is not limited to, the sugar specification described below. Exchange of inputs within the same classification group is allowed but should not be to disadvantage of the producer. This requirement does not apply if raw sugar for refining is further processed to any of the following specifications. Sugar specification / classification White and refined sugars Unrefined sugars for direct consumption Non-centrifugated deyhidrated sugar cane juice (as defined by the FAO Codex Alimentarius Commission) Pol. min. 99, 7, colour max. ICUMSA 150, includes plantation white Different colours and crystals / grains; from off white to dark brown (for example includes, but is not limited to, soft browns, golden browns and demerara) E.g. panela, jaggery Examples: If you sell Fairtrade white and refined sugars then the input purchased cannot be unrefined sugars for direct consumption; if you sell unrefined sugars for direct consumption then the input purchased cannot be non-centrifugated dehydrated sugar cane juice; if you sell Fairtrade organic sugar then the input purchased cannot be non-organic Fairtrade sugar Mixing of cane sugar and beet sugar Applies to: All traders that apply mass balance If you process Fairtrade cane sugar in premises also sourcing beet sugar you do not sell as Fairtrade products exclusively made with beet sugar. Guidance: Cane sugar operators can process Fairtrade cane sugar in premises also sourcing beet sugar. Operators are encouraged to maximize the use of Fairtrade cane sugar to process the certified product. 6

7 2.1.3 NEW Avoiding GMO contamination Applies to: All traders that apply mass balance You do not use genetically-modified beet sugar in a Fairtrade product. 3. Production Intent: To promote additional practices that stimulate sustainable production and the well-being of workers. 3.1 Production indicators NEW Reporting of indicators Applies to: All producers Year 3 You report at least once a year on the following monitoring indicators: volumes and yields, kill/mill interval, use of inputs, water management. You send this information to sugar@fairtrade.net. Guidance: Monitoring production practices facilitates learning processes and enables the introduction of more sustainable practices and competitiveness over time. In addition, this information provides key data to the market. A reporting template is provided in Annex 1 of this standard. You can use this template or use your own material, as long as you provide all the necessary information. 3.2 Occupational health and safety NEW Drinking water for workers Applies to: All producers You and the members of your organization ensure that all field workers have clean drinking water. 7

8 4. Business and Development Intent: To ensure that Fairtrade transactions are carried out under transparent and fair conditions, in a way that lays the foundations for producer empowerment and development. 4.1 Contracts Contracts / Supply agreements Applies to: Mills / exporters You sign contracts / supply agreements with producers prior to or as soon as possible during the cane harvest, including for Fairtrade eligible cane NEW Bi-annual reporting by conveyors Applies to: Fairtrade conveyors You send to the producer, twice a year, a report including, for each purchase contract, the exact volumes that have been sold and Fairtrade Premium due. Guidance: This requirement replaces the requirement in the Trader Standard. 4.2 Price and Fairtrade Premium NEW Payment and agreement on market price Applies to: Fairtrade conveyors You agree with the producer the price and payment terms. If prices are defined by national authorities through mechanisms such as revenue sharing systems or if the price is set by the government, a written agreement is not necessary. Guidance: This requirement replaces the requirement in the Trader Standard. You are encouraged to share with producers information about how the payment system in your country works Fairtrade Premium for secondary products and / or its derivatives Applies to: Fairtrade payers For secondary products and / or its derivatives, you pay at least a Fairtrade Premium of 15% in addition to the negotiated price. 8

9 4.3 Timely payment Timely payment of Premium by payers Applies to: Fairtrade Payers You pay the producer (or the conveyor, if applicable) the Fairtrade Premium for the Fairtrade products no later than 30 days after the receipt of the documents transferring ownership NEW Aggregation of premium payment by conveyors Applies to: Fairtrade Conveyors Where requested and agreed by the producers, you can transfer premium payments in an aggregated manner, in which case this payment must be made no later than 30 days after the end of each quarter. 4.4 Premium payment in case of multiple producers supplying the same mill NEW Agreement among multiple producers supplying the same mill Applies to: All producers You have an agreement with other producer organizations delivering to the same mill on how the Fairtrade Premium will be shared among the organizations. You inform the mill about the agreement in writing before harvest starts. In case there is no agreement on how the Fairtrade Premium should be distributed among producer organizations delivering to the same mill, then a mediation process must be started immediately. If there is no conclusion within 4 weeks after the mediation process has started, you accept that the payer distributes the premium according to the volume of sugar cane delivered by each organization. Guidance: Mediation can be led by Producer Networks or Fairtrade International (GPM) or any other body that all parties can agree on. Other alternatives for the distribution of premium are for example Fairtrade Premium equally divided by the number of organizations delivering to the mill or Fairtrade Premium distributed proportionate to the number of members in each organization NEW Agreement on membership lists Applies to: All producers In cases where individual producers are members of more than one organization, you agree internally on your membership list and send it to the mill / exporter before harvest starts. The list includes the date and the expected overall volume of the organization and per member. Changes to the membership will not be accepted during harvest. Individual producers can only be a member of one organization at a time. 9

10 4.4.3 Documentary traceability Applies to: Mills / exporters You keep records with the names of the individual producers, the producer organization of the individual producers, the volumes, and the dates of the delivery. You seek confirmation of the volumes of cane supplied by each producer organization per harvest. You communicate to the payer the agreement reached by producers on premium distribution, or in case of no-agreement among producers, the volumes of cane supplied by each producer organization NEW Payment of premium when multiple producers supply the same mill Applies to: Fairtrade payers You pay the premium according to the information provided by the mill / exporter. 4.5 Premium use NEW Premium planning Applies to: All Producers When planning for the Fairtrade Development Plan, you discuss if investing the Fairtrade Premium in activities that increase quality and productivity would help your members to have more secure incomes. You present the results of this discussion to the General Assembly before approving the Fairtrade Development Plan. Guidance: The intention of this requirement is that you and your members are aware that programs to increase productivity and quality may be an important tool to increase income and that you are able to assess whether or not these investments respond to the needs of your organization, members, workers and communities. You are encouraged to use at least 25% of the value of the Fairtrade Premium for productivity, quality and sustainable production improvement activities. However, it is recognized that producer organizations are free to decide on their premium use. 4.6 Access to finance NEW Pre-financing Fairtrade contracts Applies to: First buyer of cane VBP You provide other forms of financial support to producers, as described in requirement in the Trader Standard. Guidance: Since individual cane producers are paid directly by the mill or any-other body in the country of origin, pre-finance is not applicable. This requirement replaces the requirement in the Trader Standard. 10

11 4.6.2 NEW Access to other types of finance Applies to: Fairtrade payer VBP You provide other forms of financial support to producers, as described in Trader Standard (req ), for example, to pay the premium in advance. 4.7 Sourcing and market information for planning NEW Regular meetings with producers Applies to: Mills / exporters or marketing body in the country of origin. You invite representatives of all producer organizations you buy from, to regular meetings to discuss how to improve sustainable production of sugar cane, sugar and its secondary products. You share an annual report of Fairtrade sales as well as an overview of the premium to be received. These meetings take place at least twice a year and agreements are minuted. Guidance: It is recommended that the meetings take place before the harvest and after Fairtrade sales are confirmed. The meetings are convened by the mill, the exporter or the marketing body. It is usually the body the producers have the contract with. 4.8 Retro-certification Sourcing Applies to: Producers You can sell your cane as retro-certified for a maximum of one year before the initial certification was granted Confirmation of Fairtrade eligible Applies to: Fairtrade payer You are allowed to retro-certify sugar. If you retro-certify you ensure you have a written confirmation from the exporter that Fairtrade eligible sugar is available Record-keeping Applies to: Exporters You keep track of volumes of retro-certified sugar. 11

12 Annex 1: Reporting template for production indicators This template is designed to help you comply with requirement in the Production section in the. This template can also help you to comply with requirement in the Cane Sugar Standard regarding Premium planning activities. It can be an effective tool to monitor production indicators and to assess whether further investments in productivity and quality respond to the needs of your organization, members, workers and communities. It is not necessary that you use this template in order to comply with the requirements, but it can help you to have a starting point, guide you through the process and provide you with ideas. Unpredictable, volatile and low cane and sugar prices have threatened the viability of sugar cane production, especially for small farmers. Monitoring production practices allows you and your members to have an overview of your performance and enable you to take measures to increase your competitiveness and productivity. Such activities can include improving the use of inputs, production and/or harvesting methods, or seeking collaboration with research institutes and the industry. Decreasing unnecessary costs and using the right inputs to improve your productivity could result in an increased revenue / income. The development and monitoring of indicators offers you and your members a greater control over your organization, especially if you collect good quality data for comparison and analysis. In addition, this information provides key data to buyers. The information generated by using this template can provide further evidence of measurable impact for producers while it also allows Fairtrade International to better understand producer organizations and consequently shape and improve the Fairtrade system by identifying target areas where further support for producers is needed. Abbreviations used: MT (metric tons), ha (hectares), kg (kilograms) General information of the organization: FLO ID Name of the organization Number of individual members producing sugar cane Production/crop year Guidance: all information reported should cover the same crop year. Are the figures provided a sample or do they include the information of all your individual members? Guidance: You can collect the information based on the whole membership or on a selection of producers. If you decide to report on a sample, this should be representative for the whole membership (for example the size, area of production within the country, climatic differences, flat land or rocky / hilly areas, etc.). Also, indicate the percentage of producers that are covered and describe the criteria you used to choose your sample. The information reported below include all my members The information reported below is based on ( %) of my members 12

13 It is recommended that you continue to report on the same group of members from year to year; otherwise you will not be able to compare the data. If from one year to another you select a different sample, please explain why. Average MT of cane per MT of sugar Guidance: Also known as tc/ts and is established on a daily basis as an average of the overall performance during the crushing period. Usually the processor informs the average after the harvest is completed. Total volume of in MT of cane produced by members in the last crop year. Guidance: This is the volume produced NOT the volume delivered to the mill. Total volume of MT of cane processed by your members in the last crop year Total land area under cane sugar production (ha) Guidance: This is the total land area from all members which was cultivated with cane sugar in the last crop year Topic Indicator Unit of measurement Data Source of information (where does the information coming from) Comment (Any additional information that gives background on the data provided and that explains it in comparison with the previous year and/or other reference data like region averages) 1. Volumes and yields Fairtrade cane sugar is produced in very different geographical areas, therefore the following examples are only an indication and might be different for your own organization. Various strategies could support you in achieving best performance of yields, for example maintenance of ratoons before planting, soil preparation and use of inputs based on results of soil testing, choice of varieties and adhering to variety / soil, training and implementation of Good Agricultural Practices, among others. 1.1 Cane /Sugar yield Average MT of cane per MT of sugar tc/ts Example: 8.6 Example: provided by the processor Examples of factors affecting yields, climate, logistics, number of days of unapproachable fields, number of day of mill breakdown, information on mill efficiency 1.2 Sugar yield Average MT of sucrose per hectare ts/ha 1.3 Field yield Total volume of cane produced by members / Total land area under cane production tc/ha Example: >80 tc/ha 1R; >70 tc/ha 2R; >65 tc/ha 4R 13

14 Topic Indicator Unit of measurement Data Source of information (where does the information coming from) Comment (Any additional information that gives background on the data provided and that explains it in comparison with the previous year and/or other reference data like region averages) 2. Kill/mill interval: this interval is the time between cutting/burning the cane and delivering to the mill and is generally optimized by harvesting at peak maturity (ripeness) of the cane and reducing extraneous matter content in canes harvested. The interval depends on your transport methods from the collection point to the mill and the distance to the processor. The cane needs to be crushed as fresh as possible, therefore the quickest you can deliver the cane to the mill, the higher the sugar yield. The difference of the threshold of 96 hours (48 hrs x 2) for green (fresh) cane takes in consideration the fact that sucrose content of burnt cane deteriorates approximately twice as fast than the sucrose content of green cane. Harvesting green or burnt cane has interdependency with the processing/crushing. In Fairtrade origins burning cane as a harvesting method is a practice of small farmers / workers and manual cane cutting that exist in some countries. Cane cutting is done manually and harvesting burnt cane is one method to prevent death or injuries of cutters / farmers by snake bites. 2.1 Average Kill/Mill interval burn cane 2.2 Average Kill/Mill interval green cane 3. Use of inputs Volume of burnt cane that was milled below 48 hours Volume of burnt cane that was milled above 48 hours Volume of green cane that was milled below 96 hours Volume of green cane that was milled above 96 hours MT MT MT MT Understanding and recording the use of inputs will enable you to take informed measures to increase your competitiveness and productivity and/or seek technical support if needed. Ideally the use of inputs, for example of fertilizers should be applied in amounts that respond to the nutrient need of the crop. The use of resistant cane varieties and integrated pest management decreases the need to use pesticides. See the Fairtrade Standard for Small Producer Organizations requirements 3.2.2; 3.2.5; ; ; , for more information on requirements related to use of inputs. 3.1 Use fertilizers Do your individual members keep records of the use of fertilizers? How many of your individual members apply fertilizer based on: a) their own knowledge b) results of soil sampling Yes/No Number of individual members applying fertilizer based on Yes No a) members apply fertilizer based on their own knowledge b) members apply fertilizer based on results of soil sampling 14

15 Topic Indicator Unit of measurement Data Source of information (where does the information coming from) Comment (Any additional information that gives background on the data provided and that explains it in comparison with the previous year and/or other reference data like region averages) c) industry recommendations d) others (please specify) the examples provided c) members apply fertilizer based on industry recommendations d) members apply fertilizer based on 3.2 Use of pesticides Main pesticides used Commercial names of the pesticides Main pests targeted Kg of the pesticide applied per ha Name of pest kg/ha Commercial name: targeted pests (Kg/ha) Eg. Lorsban: sugarcane borer (1.6 Kg/ha) 1. : ( Kg/ha) 2. : ( Kg/ha) 3. : ( Kg/ha) 3.3 Use of herbicides Main herbicides used Commercial names of the herbicides Commercial name: targeted weed (Kg/ha) Eg. AAtrex: weed control (2 Kg/ha) Main weeds targeted Kg of the herbicide applied per ha Name of weed Kg/ha 1. : ( Kg/ha) 2. : ( Kg/ha) 3. : ( Kg/ha) 15

16 Topic Indicator Unit of measurement Data Source of information (where does the information coming from) Comment (Any additional information that gives background on the data provided and that explains it in comparison with the previous year and/or other reference data like region averages) 4. Water management Good management practices include water. Too much water can damage soil and result in higher cane growth but less overall sugar production, while too little water can result in poor growth and damaged crops. Production and productivity evolve under different conditions even in the same geographical location. Monitoring water use, irrigation and drainage practices will enable you or your research institutes / industry / partners to develop more precise recommendations that will help the members of your organization to improve productivity and quality. There are additional costs involved in irrigation projects, therefore recording the water use could be important to see how (or whether) those costs are validated by the production and productivity gains. See the Fairtrade Standard for Small Producer Organizations requirement for more information on water management 4.1 Irrigation Hectares of rainfed cane production ha Hectares of cane production under irrigation Volume of water in m3 per hectare used for irrigation Type of irrigation systems used ha M3/ha List of methods used Example: drip irrigation 4.2 Drainage Hectares of cane production with drainage ha Type of drainage methods used List of methods used Examples: placing pipes (underground drainage),use of pumps 16

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